Price elasticity of supply is 2.5. At a price of Rs.5/unit its quantit – InterviewSolution

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1.	Price elasticity of supply is 2.5. At a price of Rs.5/unit its quantity supplied is 300 units. Calculate the quantity supplied at a price of Rs.4/unit.
Answer» `{:(" P 5"),(" P"_(1)" 4,"),(ulbar(Delta"P -1")):}" "{:("Q 300"),("Q"_(1)" "?),(ulbar(DeltaQ" ?")):}` `P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)" or "2.5=(5)/(300)xx(DeltaQ)/(-1)` `DeltaQ=-150` `DeltaQ=Q_(1)-Q" or "-150=Q_(1)-300` `Q_(1)=150`

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